The Philippines Tariff Commission has declared that the country“s sole glass pane manufacturer – AGC Flat Glass Philippines, Inc. – has complied with a requirement that it implement a programme to bo…
The Philippines Tariff Commission has declared that the country“s sole glass pane manufacturer – AGC Flat Glass Philippines, Inc. – has complied with a requirement that it implement a programme to boost its competitiveness, in exchange for safeguard duty on competing imports. This is one of the two conditions the industry must fulfil for the safeguard duty to be extended past its expiry on 8 December 2009, the second condition being that of the threat of imports to damage the local industry. The state agency, however, noted that the market share of foreign-made glass panes declined last year. According to a report on the website of the state agency, “The domestic flat glass industry has complied substantially with its commitments as stated in the adjustment plan.” In its programme, AGC Flat Glass Philippines has invested in new machinery, undertaken power efficiency measures, simplified the variety of glass stocks it manufacturers, and expanded into making solar glass panels to boost its competitiveness. According to the state agency, the volume of imported flat glass dropped 6.77% to 15,179 tons in 2008 from levels of the previous year, while the market share of imports was 13%, a decrease from the 2007 figure of 18%. During the same period, AGC Flat Glass Philippines“ production and sales of flat glass rose 32% and 38% respectively. Capacity utilization of the plant was 83.05% in 2008, an increase from 62.8% in 2007. However, the situation regarding figured glass was different. In fact, imports more than doubled (121%) to 20,300 tons in 2008 after AGC Flat Glass Philippines stopped producing this type of glass in 2007. The safeguard duty, which has now been in place for six years, can be extended for four years as per the discretion of the department, according to the Safeguard Measures Act and its implementing rules. The extension was opposed by importer Comglasco Aguila Glass Corp. on the grounds that this would “further the monopoly of [the petitioner]…and the consumer will be forced to purchase more expensive glass.” At present, the safeguard duty on imported clear float glass is P3,583 per ton and P4,526 per ton for tinted. On the other hand, the duty on figured glass, meanwhile, was suspended when the local manufacturer stopped producing this type.